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BookingAlpha Option Trading Advisory

Thursday, September 21, 2017

November SPX Unbalanced Iron Condor

Trade Details:

20 November SPX 2325/2315 Credit Put spreads  0.50 Credit ($1000)
5   November SPX 2575/2585 Credit Call spreads 1.00 Credit ($500)

Net Credit: $1,500
Days to Expiration: 57
Conservative Call side size once again, playing the 4 to 1 ratio of Puts to Calls.

Profit picture:
(Click on image to enlarge)


An SPX Chart for future reference and self-study:
(Click on image to enlarge)


Trade Update - October 5, 2017
Added a small credit on the Put side as the SPX keeps going up and yet no overbought extreme condition is materialized
(Click on image to enlarge)

Trade details:
Sold 10 November SPX 2425/2420 Credit Put spreads 0.25 Credit
In dollar terms that's an extra $250.

The total credit collected from Put sides alone is now $1,250.
The 2575/2585 Credit Call side is losing roughly that same amount right now. I could take a loss there, and overall should come out with a break-even trade by November expiration. Assuming of course no serious market sell-off takes place.

Here's the updated profile risk of the position with today's addition:
(Click on image to enlarge)



Trade Update - October 10, 2017

Closed 5 November SPX 2575/2585 Credit Call spreads @3.25 debit
The original credit was 1.00 per spread, so this is a net loss of 2.25 per spread.
A $1,125 loss for 5 spreads.

The total credit received from Put spreads ($1,250) is greater than today's loss. So, overall the trade may still end up as a small winner in the end.

I'll consider re-establishing a Call side around SPX 2,630/2,640 if SPX reaches 2,570 or so.


Trade Update - November 17, 2017

20 November SPX 2325/2315 Credit Put spreads expire for max profit
Credit was 0.50 per spread, which is $1000 in dollar terms.

10 November SPX 2425/2420 Credit Put spreads expire for max profit
Credit was 0.25 Credit per spread. A small additional $250 gain here.


The entire November SPX Unbalanced Iron Condor is now closed and despite the loss on the Call side during the month of October, the position resulted in an overall winning trade:

5 November SPX 2575/2585 Credit Call spreads: a $1,125 loss
20 November SPX 2325/2315 Credit Put spreads: a $1000 gain
10 November SPX 2425/2420 Credit Put spreads: a $250 gain
Net result: $+125


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